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What is the role of the financial system?. Describe two markets that are part of the financial system in the U.S. economy?

  1. What is the role of the financial system?. Describe two markets that are part of the financial system in the U.S. economy?
  2. Why is it important for people who own stocks and bonds to diversify their holdings. What type of financial institution makes diversification easier?
  3. Consider a change in the tax code that might increase private saving. If this policy were implemented, how would it affect the market for loanable funds?

Top Answer

Financial system maintains a few key roles in the economy. It serves as a link between savers and investors, it promotes... View the full answer

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